Answer:
(a) Continue to operate.
(b) Shut down
(c) Continue to operate.
Explanation:
(a) It is given that the firm will experiencing a loss of $5000. Therefore, it means that a loss of $5,000 is borne by the producer of the fixed cost. It is a portion of fixed cost but the firm will continue to operate in the short run if it covers all of the variable cost in the short run.
(b) The firms in the long run try to cover all of its variable and fixed cost. If this situation persists then this firm unable to cover its all costs. Therefore, the firm will shut down its operation and go out of the business.
(c) Now, if the firm’s fixed costs are $2,000.
There is a reduction in the fixed cost by $6,000
Previously firm able to cover = $8,000 - $5,000
= $3,000
It means that it cover its fixed cost and hence, the firm will operate in both short run and long run.
Answer:
$204,080
Explanation:
The computation of operating cost is shown below:-
operating cost if occupy 55%
Cost on (800 × 90%)
= 720 units is $220,040
Cost on (800 × 80%)
= 640 Units is $215,480
Variable cost per unit = Changes in total cost ÷ High activity-Low activity
= ($220,040 - $$215,480) ÷ (720 - 640)
= 4,560 ÷ 80
= 57 per unit
Fixed cost = Total cost - Variable cost
= $220,040 - (720 × 57)
= $179,000
Cost equation:
Total cost = Fixed cost + Variable cost per unit
Y = $179,000 + 57X
Y = $1790,00 + (57 × 440)
Y = $204,080
It is probably safe to say that most if not all decisions involve trade-offs. For example a person may be offered a job that pays well but requires 7 days per week for a month and while this is good for a younger person with no other commitments it may not work for an older person with his own family commitments and other projects. Another decision could be that for support, a husband decides to not take on major time consuming projects while his wife is doing intensive studying to become certified in a field of her choosing so that he can support her. Another example is that when one cannot drive one's son with a disability to a beach to swim because it is too far and uses too much car gas, the money saved on gas some of it could be spent on his groceries.
<span>This type of agreement would be called a consideration. This is an agreement that provides a type of value to both parties involved and promises a certain performance by one party to the other. In this case, one thing is given for another, the money for the car.</span>
Answer:
The integration or growth of a company can occur horizontally or vertically, depending on whether it acquires competing companies that develop their business in parallel (horizontal integration), or it acquires companies or businesses that are in a different stage of the production process (companies that generate raw materials, transport, marketing, etc.).
Thus, if Electrolux expands its business by acquiring a competitor such as Whirlpool, it will be a case of horizontal integration. In contrast, if Electrolux acquires a company dedicated to the marketing of products, such as Best Buy, it will be a case of vertical integration.
